Dangote’s fuel prices still high despite global crude slump — S&P Global
Despite recent reductions, petrol prices from the Dangote Petroleum Refinery remain relatively high when compared to the global drop in crude oil prices, according to a new report by S&P Global.
This pricing strategy, analysts say, has made fuel importation into Nigeria more attractive for marketers.
The 650,000 barrels per day refinery, located in Lekki, Lagos, has cut petrol prices multiple times since launching operations. The refinery brought down its pump price from around N1,100 per litre in September to N860 in March, though prices later increased again following a pause in the naira-for-crude exchange policy.
However, S&P Global pointed out that the refinery’s reductions did not match the global dip in fuel prices.
“Incentives to ship products to West Africa have also come from the pricing at Nigeria’s Dangote refinery. While flat prices have been driven down massively amid falling crude prices, Dangote has not lowered gantry prices for truck volumes significantly.
“Between April 1 and April 9, the Eurobob M1 swap fell from $734.25 per metric tonne to $603/MT, a 17.9 per cent fall, before recovering somewhat. But over the same period, Dangote’s truck price at the gantry dropped just 1.7 per cent from N880/litre to N865/litre, according to reporting from the MEMAN retail organisation.
“This has encouraged a flood of products to West Africa, where high domestic prices have led marketers to import from international traders in greater volumes,” the report said.
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On Wednesday, the refinery adjusted its gantry price downward again to N835 per litre and advised partners to retail at N890 per litre within Lagos.
“High-quality Dangote petrol will now be available at the following prices across all our partner retail outlets: Key partners, including MRS, AP (Ardova), Heyden, Optima Energy, Hyde, and Techno Oil, will offer petrol at N890 per litre, down from N920 in Lagos.
“In the South-West, the price will be N900 per litre, reduced from N930. In the North-West and North-Central, the price will be N910 per litre, lowered from N940. In the South-East, South-South, and North-East, the price will be N920 per litre, down from N950,” the company said in a statement on Wednesday.
A market survey conducted by our correspondent at several stations in Lagos and Ogun States revealed further price reductions by various outlets, as a fresh round of competition unfolds.
Independent player SGR, which operates four outlets in Mowe and Sagamu, slashed its pump price to N878 per litre—lower than Dangote’s. Meanwhile, Heyden and MRS were seen selling at N885 and N890 respectively, although some Dangote-affiliated stations and outlets run by the Nigerian National Petroleum Company Limited still charged around N910 to N920 per litre.
A source close to the Dangote Group, who requested anonymity due to lack of authorisation to speak on the matter, revealed that a more significant price cut had been scheduled for April 10—Aliko Dangote’s 68th birthday—but the suspension of the naira-for-crude policy stalled the plan.
“Alhaji was planning a massive price cut on his birthday, April 10, but that could not happen because of the suspension of the naira-for-crude policy. Nevertheless, he was still able to do something, though marginally.
“Now that the Federal Government has returned the naira-for-crude policy fully and the crude prices are crashing, the competition has returned. I can tell you that the Dangote refinery is planning to crash the price of petrol and make it affordable for the masses,” the source said.
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In addition to the local dynamics, S&P Global reported a broader shift in global petrol trade patterns. Europe, traditionally exporting large volumes to the US during summer, has rerouted shipments toward West Africa this year.
“Typically, the summer driving season sees increased flows from Europe to the US Atlantic Coast amid an uptick in summer driving demand. At the same time, specification differences between Europe and WAF, which exist in the summer, disappear in the winter, typically resulting in fewer volumes fixed to Nigeria.
“The threat of tariffs and changes in Nigeria’s refining landscape has seen this trend flip in 2025. Large volumes are presently set to arrive in West Africa’s Offshore Lome hub, while the USAC has been demanding more limited flows amid demand-side fears and tariff threats,” it was reported.
Citing tracking data from S&P Global Commodities at Sea, the report revealed that around four million metric tonnes of petrol are set to arrive in West Africa in the 30 days leading up to April 27 — a level not recorded in over two years.
This influx coincides with a surge in Nigerian fuel imports. Between April 8 and 16, traders brought in 156.9 million litres of petrol, according to import data.
Meanwhile, the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed, stated on Tuesday that daily imports of petrol have dropped significantly — from 44.6 million litres per day in August 2024 to just 14.7 million litres per day as of April 2025.
It should be noted that Dangote is still in legal proceedings with the NMDPRA over the agency’s decision to grant import licences to independent fuel marketers.
Dangote’s fuel prices still high despite global crude slump — S&P Global
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